Paxos has launched a Global Dollar Network in partnership with Kraken, Robinhood, Galaxy Digital, Anchorage Digital, Bullish, and Nuvei.
According to the press release, this network is built to support the new stablecoin called USDG, which is pegged to the U.S. dollar and follows upcoming stablecoin rules from the Monetary Authority of Singapore. Unlike other stablecoins, USDG includes a yield-sharing model, so participants who drive adoption can earn returns from the reserve funds.
Johann Kerbrat, general manager and vice-president of Robinhood Crypto, explained, “Stablecoins have been proven to offer a bridge between traditional finance and cryptocurrencies, enabling faster, lower cost, and more efficient transactions.”
For now, only invited financial institutions can use USDG to create new solutions, and Anchorage Digital’s CEO Nathan McCauley said these early adopters will enjoy “fast peer-to-peer and cross-border transactions and the ability to earn rewards on stablecoin deposits.”
DBS Bank, Southeast Asia’s biggest bank, will manage the fund and custody for USDG’s reserves. Initially, USDG will be available on platforms from Anchorage Digital, Galaxy Digital, Kraken, and Paxos, with more platforms to come as it grows.
Paxos CEO Charles Cascarilla described the project as “replatforming the financial system.” He said the network is open for anyone to join and aims to encourage the global use of stablecoins.
Currently, USDG is only on the Ethereum blockchain, but Paxos plans to add more blockchains over time as regulations allow.
Also Read: Paxos Launches New Stablecoin Payment Platform with Stripe
